NEW YORK – T2 Biosystems reported after the close of the market on Monday that its fourth quarter revenues rose 71 percent year over year.
For the three months ended Dec. 31, 2019, the company posted revenues of $3.1 million, lower than analysts' average estimate of $3.7 million. Product revenues were up 18 percent year over year at $1.6 million, and the firm's research revenues doubled to $1.5 million.
In the quarter, T2 Bio received CE mark for its T2 Resistance panel and secured 10 new placements for the T2Dx instruments. The firm also appointed John Sperzel as CEO, and added Tony Pare as chief commercial officer.
T2 Bio said that its Q4 net loss narrowed to $14.1 million, or $.30 per share, from a net loss of $15.1 million, or $.34 per share, in Q4 2018, missing the consensus Wall Street estimate for a net loss of $0.27 per share.
For full-year 2019, T2 Bio said total revenues were $8.3 million, a decrease of 21 percent from $10.5 million in 2018, and lower than analysts' average estimate of $8.6 million. Product revenues rose 11 percent year over year to $5.3 million from $4.8 million in the prior-year quarter.
The firm said that for full year 2019, its net loss widened to $59.0 million, or $1.30 per share, from $51.2 million, or $1.26 per share, in 2018. Analysts, on average, had estimated a net loss per share of $1.24 for 2019.
T2 Bio reported that its 2019 R&D expenses increased 12 percent to $16.3 million from $14.5 million in 2017, and its SG&A expenses rose 6 percent to $27.3 million from $25.7 million.
The firm also noted that in 2019 it secured 45 new contracts of T2Dx instruments.
On a conference call Monday to discuss the firm's earnings, Sperzel emphasized 2019 milestones including a new technology add-on payment (NTAP) for the T2 Bacteria panel from the US Centers for Medicare and Medicaid Services; a $69 million contract award; breakthrough device designation from the US Food and Drug Administration for the T2 Resistance panel; and a breakthrough technology contract from group purchasing organization Premier.
T2 Bio had cash and cash equivalents of $11.0 million at the end of December.
The firm said that it expects revenues in the range of $14.0 million to $17.0 million for 2020, including product revenue of between $8.0 million and $10.0 million and research and grant contribution revenue of between $6.0 million and $7.0 million.
The company expects to secure contracts for 30 T2Dx instruments in 2020 and to emphasize test sales over instrument placement going forward.
In Tuesday morning trading on the Nasdaq, T2 Bio's shares were up 3 percent to $.85.